Iran's judiciary has suspended from publication a local paper and arrested its chief editor after the newspaper carried a front page photograph of banned opposition People's Mujahedeen leader Maryam Rajavi, the paper said on Monday.

The Asia Financial Daily said its flamboyant editor-in-chief Iraj Jamshidi and his wife Saghi Baghernia, the paper's nominal managing director and license holder, were arrested Sunday and held overnight in north Tehran's Evin prison.

Baghernia was released Monday on bail, international editor Akbar Javadi told AFP, adding that Jamshidi had been offered bail of two billion rials (appx. 245,000 dollars).

On Saturday, the Asia Financial Daily carried a front page story on the freeing on bail by a French court of top People's Mujahedeen leader Maryam Rajavi, including a photo showing her being cheered by supporters. (Albawaba.com)